Question
Your portfolio has a beta of 1.12. The portfolio consists of 40 percent U.S. Treasury bills, 30 percent stock D, and 30 percent stock E.
Your portfolio has a beta of 1.12. The portfolio consists of 40 percent U.S. Treasury bills, 30 percent stock D, and 30 percent stock E. Stock D has a risk-level equivalent to that of the overall market.
(Note: Treasury Bills are risk free and therefore have a beta of 0).
What is the beta of stock D?
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Mathematics Of Finance
Authors: Robert Brown, Steve Kopp, Petr Zima
8th Edition
0070876460, 978-0070876460
